Stock Market Today: Dow Spikes 489 Points After Encouraging Inflation Data

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published 14 November 2023

Stocks catapulted higher out of the gate Tuesday and stayed that way through the close as a weaker-than-expected inflation update ramped up expectations the Federal Reserve is done hiking interest rates.

Ahead of the opening bell, data from the Bureau of Labor Statistics showed that the October Consumer Price Index (CPI) was flat on a month-over-month basis and up 3.2% year-over-year.

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The October CPI report "should likely keep the Fed from raising interest rates at next month's meeting," says Jeffrey Roach, chief economist at LPL Financial. However, the economist also believes that despite the deceleration in price growth, "the Fed will likely continue to speak hawkishly and will keep warning investors not to be complacent about [its] resolve to get inflation down to the long-run 2% target."

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With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.